Arkansas Annual Franchise Tax Report: How to File, Pay, and Avoid Penalties

Arkansas LLCs and corporations must submit an Annual Franchise Tax Report to the Secretary of State and pay a tax; otherwise, they face losing the right to do business in Arkansas. Non-stock corporations pay $300, LLCs pay $150, and stock corporations pay the greater of $150 or 0.3% of their capital stock. Tax payments and reports can be submitted online or by mail. Reports are due each year by May 1. Late reports are automatically assessed a $25 penalty, and interest is charged until the tax is paid.

Each year, we get the question from Arkansas LLC owners, “Where is the annual report?” Arkansas is one of the few states that call this filing an “Annual Franchise Tax Report” rather than a simple annual report. The report serves the same purpose as an annual report in other states and allows the state to update business-related information and collect a franchise tax.

Who Must File an Arkansas Annual Franchise Tax Report?

• Domestic and Foreign LLCs. This includes all LLCs registered to do business in Arkansas, regardless of where they were formed.
• Stock Corporations. This includes corporations that have issued shares of stock to shareholders.
• Nonstock Corporations.
• Bank and Insurance Companies. These companies are filed under the Franchise Tax and are assessed a different fee.
• Nonprofit Corporations.

If your company was formed last year and you did not file a Franchise Tax Report, you have until May 1 of this year to file your first report. Your first report will be based on your business activities for the previous year.

When Is the Arkansas Annual Report Due?

The due date for the Arkansas Annual Report is fixed and does not change. LLCs and Corporations are due on May 1 each year. Nonprofit corporations are due on August 1 each year. The filing window opens on January 1 each year. You may file your report up to four months before the due date. Once the due date passes, it cannot be extended. The 1991 Arkansas Legislature removed the option to extend the due date.

How Much Does the Arkansas Annual Report Cost in 2026?

As of September 2026, the fee depends entirely on your entity type:

For most small business LLCs, this makes the math simple: it’s $150, full stop, regardless of revenue or activity during the year. Stock corporations must calculate 0.3% of their outstanding capital stock value and pay the higher of that amount or the $150 minimum.

If you’re filing online, the state’s payment system may add a small card-processing fee on top of the tax itself. Check the current amount on the filing portal, since we couldn’t independently verify a fixed figure.

What Information Do You Need to File an Arkansas Annual Report?

You may need to update the following information for an LLC:

• The name of the registered agent and the Arkansas street address (P.O. boxes are not allowed)
• The principal office address
• The names of members or managers
• The nature of the business
• The federal tax ID number (EIN)

You will also need to include the above information for a corporation, as well as:

• The names of corporate officers
• The state of incorporation
• The date the corporation was incorporated
• The number of authorized and issued stock (for stock corporations)

How to File Your Arkansas Annual Report (Online or by Mail)

You can file online or by mail to report and pay your franchise tax. Filing online is faster, and you will receive a confirmation. To file by mail, obtain the form applicable to your business (LLC, corporation, or non-profit), then complete and sign it. Include your payment and mail it to the Arkansas Secretary of State at the address provided on the form. Reports must be filed by May 1. Reports filed by mail must be postmarked by May 1.

What Happens If You Miss the Arkansas Annual Report Deadline?

Late filing of taxes in Arkansas is subject to a $25 penalty, which is considered a debt owed by the entity. The debt is subject to compounding interest at a rate of 10% per year. Interest is charged from the day after the due date of the tax.

If the taxes and reports are not filed, the Secretary of State may take action to revoke the business entity’s right to transact business in Arkansas or to forfeit its existence in Arkansas. The business entity’s authority to transact business in Arkansas may not be reinstated unless the reports are filed and all taxes, penalties, and interest are paid. This authority may not be reinstated indefinitely. It is in the entity’s best interest to file reports and pay taxes in a timely fashion.

Arkansas Annual Report vs. Other Business Taxes and Filings

It is understandable to confuse the Annual Franchise Tax Report with other business reports. Below are some differences to consider:

Franchise tax vs. federal tax return: Completing the Annual Franchise Tax Report does not affect your federal taxes. The Franchise Tax Report is filed with the Arkansas Secretary of State and reports your business’s activities in Arkansas. Reporting your business to the Secretary of State does not affect your tax liability with the IRS.

Franchise tax vs. state income tax: Arkansas has a state income tax that is separate from the state franchise tax. The state taxes are reported to and administered by the Arkansas Department of Finance and Administration.

Registered agent requirement: Each business entity (corporation or LLC) is required to have a registered agent in Arkansas. Your registered agent service will notify you annually of the due date for your franchise tax report. This does not affect your requirement to file the report.

Common Arkansas Annual Report Filing Mistakes

1. Assuming inactivity exempts you from filing. Many LLC members believe that if a business conducts no transactions in a given year, there’s no filing obligation. In reality, Arkansas charges a flat $150 annual fee simply to keep an LLC formation on record.
2. Assuming your home state’s rules set your filing date. Out-of-state LLC members often assume that because their state of formation governs other LLC rules, it also governs the renewal date. In reality, Arkansas has a fixed annual renewal date of May 1, regardless of formation state.
3. Overlooking foreign entity registration. A business entity formed in another state but transacting business in Arkansas (a “foreign” entity) must also renew its registration with Arkansas.
4. Miscalculating stock corporation fees. Stock corporations must pay an annual fee equal to the greater of $150 or 0.3% of the corporation’s outstanding stock. Companies often fail to properly evaluate this threshold.
5. Letting the registered agent address go stale. An outdated registered agent address is one of the leading causes of returned filings or loss of service of process.

How to Keep Your Arkansas LLC or Corporation in Good Standing

• File and pay on time. Submit your annual report and payment by May 1 each year. This deadline falls before tax season.
• Keep contact info current. Update your registered agent and principal office address whenever changes occur.
• Recalculate stock corporation fees annually. If your company is a stock corporation, keep your records up to date to accurately calculate the 0.3% fee.
• Address late filings promptly. Delinquent reports incur a $25 late fee, plus possible interest, for each outstanding report. 

Resolve these as soon as possible. We offer a service called Annual Compliance Filing that files your Arkansas reports and pays them for you, so you can hand the burden of reporting off to us.

Frequently Asked Questions About the Arkansas Annual Report

Is an annual report required for LLCs in Arkansas? 

Yes. Arkansas requires LLCs to file an annual report called the Arkansas Annual Franchise Tax Report.

How much does Arkansas charge for an LLC annual report? 

Arkansas charges an annual fee of $150.

When is the due date for LLC annual reports in Arkansas? 

The due date for LLC annual reports in Arkansas is May 1st each year. Reports can be filed in January each year.

What happens if the LLC annual report is not filed on time in Arkansas? 

If the Arkansas LLC annual report is not filed on time, a $25 late fee is charged, and the state charges interest on the late report and fee. Failure to pay the franchise tax and file the report can result in the loss of the right to do business in Arkansas.

How can I file an LLC annual report in Arkansas? 

You can file online or by mail.

Does Arkansas charge a Franchise Tax? 

Yes. A Franchise Tax is charged to LLCs, Non-Stock Corporations, and Stock Corporations. The Franchise Tax is charged at the same time as the LLC Annual Report. An LLC pays a Franchise Tax of $150. A Non-Stock Corporation pays $300, and a Stock Corporation pays a Franchise Tax of $150 or 0.3% of its total capital.